Hero Motocorp Ltd.

, formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based

in New Delhi, India. The company is the largest two-wheeler manufacturer in the world,and also in
India, where it has a market share of about 46% in the two-wheeler category.The 2006 Forbes list of
the 200 World's Most Respected Companies has Hero Honda Motors ranked at #108. On 31 March
2013, the market capitalisation of the company was ₹308 billion (US$4.5 billion).

Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes called
Hero Group, not to be confused with the Hero Group food company of Switzerland) of India and
Honda of Japan. In 2010, when Honda decided to move out of the joint venture, Hero Group bought
the shares held by Honda, and focused on its entirely owned subsidiary, Honda Motorcycle and
Scooter India (HMSI).

In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent Hero
Investment Pvt. Ltd. with the automaker. This decision came 18 months after its split from Hero
Honda.

"Hero" is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A
joint venture between the Hero Group and Honda Motor Company was established in 1984 as the
Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26%
stake in the Company.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel
economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it – Forget
it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace
since inception. In 2001, the company became the second largest two-wheeler manufacturing
company in India and globally. It maintains global industry leadership to date. The technology in the
bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come from the
Japanese counterpart Honda.

OPERATION STRATERGY

Meaning:

Operation strategy of Hero India

 Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurgaon, Neemrana, Haridwar
and Halol under Green Field stage. These plants together have a production capacity of over 7.6
million 2-wheelers per year. Hero MotoCorp has a sales and service network with over 6,000
dealerships and service points across India. It has a customer loyalty program since 2000, called the
Hero Honda Passport Program which is now known as Hero GoodLife Program.

It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa, AG
Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a majority
of its components.

The company has a stated aim of achieving revenues of ₹640 billion (US$9.3 billion) and volumes of
1 million two-wheelers by 2016–17. This in conjunction with new countries where they can now
market their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to
achieve 10 per cent of their revenues from international markets, and they expected to launch sales
in Nigeria by end-2011 or early-2012.

The company has sold over 70 million 2-wheelers since its inception in 1984 till March 2013.[3] It
sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were motorcycles. Hero Motocorp sells
more two wheelers than the second, third and fourth placed two-wheeler companies put
together.[3] Its most popular bike Hero Honda Splendor sells more than one million units per
year.[26]

In 2013, Hero MotoCorp registered best ever calendar year performance of more than 6.1 million
unit sales. By selling 625,000 units in the month of October, it became the first-ever manufacturer to
cross landmark 600,000 unit sales in a month. In the last quarter of the year (in the festive season),
the company sold more than 1.6 million units, while in non festive time in April–May 2013, it
managed to sell out quite good numbers of units—1.1 million.

MARKETING COMPETITORS

Meaning:

Competitors of Hero India

Below are the top 7 Hero competitors:

 Yamaha.
 Bajaj Auto Limited.
 TVS Motors.
 Suzuki Motors.
 Harley Davidson.
 Royal Enfield.
 Ducati Superbike.
FORECASTING TECHNIQUES
Meaning:

There are two forms of demand forecasting,

1. Short term forecasting- short run forecast seasonal patterns are of prime importance.
Such a forecast help in preparing suitable sales policy in order to avoid over-stocking

2. long run forecasting- in long run forecast or to determine how changes in a specific
demand variables like price, advertisement expenditure, credit terms, price of competing
production etc will affect demand.

Scientific steps of forecasting

1. Identify and state the objectives of forecasting clearly.

2. Select appropriate method of forecasting

3. Identify the variable affecting the demand for the given production or service

4. Express these variable in appropriate forms

5. Collect the relevant data to represent the variables

6. Determine the most probable relationship between the dependant variable and
independent variable, using the appropriate statistical techniques.

Forecasting analysis of Hero Honda

Hero Honda Motors Ltd (HHML), the world’s largest two-wheeler manufacturer for nine
consecutive years, today reported record sales of over 4.6 million units for FY’10.

With over a million units in sales posted for every quarter of this fiscal, the company
concludes another record-breaking year of sales growth. The company has been
consistently demonstrating a high growth momentum over the years.

The company has also recently announced a Special Silver Jubilee Dividend of 4000% in
recognition of the company’s strong financial performance.

Demand forecasting of Hero Honda

For demand forecasting the frequently used statistical technique is demand estimation. Here
we have a dependent variable (sales) and one or more independent variable (time), and we
are interested in ascertaining the extent each independent variable have on the dependent
variable.
Demand estimation is of two types

1. Simple regression model- This is a model where only one independent variable is taken
into consider.

2. Multiple regression model- This is a model where several independent variables are
taken into consider

LOCATION PLANNING:
Meaning:

NEW DELHI: The country’s largest two-wheeler manufacturer Hero MotoCorp will invest Rs
1600 crore in developing a greenfield manufacturing facility in Andhra Pradesh.

This will be the eighth manufacturing facility of Hero MotoCorp, which already has five plants
in India and one each in Colombia and Bangladesh.

Spread over 600 acres in the Chittoor district of Andhra Pradesh, the facility will have an
annual installed capacity of 1.8 million units, which will be achieved in three phases. The
plant is expected to be operational before December 2019.

The new facility will generate 2000 jobs directly at the plant and an additional 10,000 jobs,
through the creation of a manufacturing eco-system of vendors and suppliers in the region.
Given the strategic location of the plant, this can also act as a key hub for the company to
export its range of products from this facility to some of its key overseas markets.

"With the commencement of construction of our new manufacturing plant at Chittoor in

Andhra Pradesh, we are bringing the same global benchmark of sustainable eco-friendly
green manufacturing to the state. When fully operational, this facility will take up our total
combined installed capacity to 11 million units of motorcycles and scooters per annum,
which is in line with our vision of surpassing the landmark 10-million unit volumes by 2020”,
Pawan Munjal, Chairman and Managing Director, Hero MotoCorp.

The existing manufacturing facilities of Hero MotoCorp in India are located at Haridwar in
Uttarakhand, Gurgaon and Dharuhera in Haryana, Neemrana in Rajasthan and Vadodara in
Gujarat. The Company also has two manufacturing facilities at overseas locations - Villa
Rica in Colombia and Jessore in Bangladesh - to cater to the growing demand for its
products in international markets. The combined installed production capacity of the
company is currently 9.2 million units per annum.
FACILITY LAYOUT:
Meaning:

Layout of Hero India:

PRODUCTION DESIGN:

Meaning:

Design of Hero India

CAPACITY PLANNING:
Meaning:

Capacity planning of Hero India:

QUALITY CONTROL SYSTEM:

Meaning:
MATERIAL HANDLING SYSTEM:

Meaning:

WASTE MANAGEMENT:

Meaning:

MATERIAL REQUIREMENT PLANNING:

Meaning:

Requirement planning of Hero India

TOTAL QUANTITY MANAGEMENT:

Meaning:

Hero Corporate’s Human Resources & Total Quality Management function is focused on creating
stakeholder value through superior organizational and personnel development, in line with the
fundamental values of the Hero Group. Hero Corporate Service Limited is the vehicle for human
resource development programmes and it maintains a tab on the Time and Quality Management of
all the Group Companies.
INVENTORY MANAGEMENT:

Meaning: